Is nervous sentiment worsening the situation?

Yes, of course. Emotions play a role in making the situation worse. There is a lack of confidence that the recovery will happen quickly. The reason is simple: unemployment is increasing; people are watching their savings diminish and you still hear of large companies that are struggling to survive. Sentiment is certainly down at this point.

That said, India's still one of the few economies that is growing, even if we debate by how much. Our exposure to exports is much smaller than our domestic consumption-driven growth, which is positive. Third, we have an economy which is still creating jobs and wealth and that's positive for anyone who is focused on India. Look at the growth in cell phones. It was between 9.5 to 11 million. That's a fantastic indicator. And I've heard from retailers that they are not seeing any impact in Tier II or Tier III cities.

Will a new Infosys emerge out of this?

The company has constantly been changing over the last several years. Ten years ago, we were primarily focused on technology solutions, application development and maintenance. Today, we have complete end-to-end solutions, from consulting to business processing to outsourcing. In fact, 53 percent of our revenues come from services that we didn't offer about seven years ago.